Motilal Oswal Sets Rs 430 Target for Aditya Birla Capital

Aditya Birla Capital Reports Strong Financials in 4QFY26

Aditya Birla Capital (ABCAP) has released its research report for the fourth quarter of fiscal year 2026, showcasing a significant growth in its consolidated revenue and profits. The company's consolidated revenue for 4QFY26 grew by 12% year-over-year (YoY) to approximately INR159 billion. Notably, the company's consolidated profit after tax (PAT), excluding one-off items, increased by 30% YoY to approximately INR11.2 billion.

In addition to the strong quarterly performance, Aditya Birla Capital's fiscal year 2026 (FY26) PAT also experienced a notable growth of 21% YoY, reaching INR38 billion. The company's overall lending book, comprising non-banking financial company (NBFC) and housing segments, grew by 32% YoY and 9% quarter-over-quarter (QoQ) to approximately INR2.08 trillion. The total assets under management (AUM) across various businesses, including asset management company (AMC), life insurance, and health insurance, grew by 16% YoY to INR5.91 trillion.

The company's mutual fund quarterly average AUM increased by 14% YoY to INR4.36 trillion. Aditya Birla Capital's life insurance individual first-year premium (FYP) grew by 15% YoY to INR47.2 billion in FY26, while its health insurance gross written premium (GWP) grew by 39% YoY to INR68.5 billion in FY26. The company's B2B platform for micro, small, and medium enterprises (MSMEs), Udyog plus, scaled up its AUM to INR58 billion.

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Outlook and Recommendation

Based on the company's strong financial performance, we expect Aditya Birla Capital to achieve a consolidated PAT compound annual growth rate (CAGR) of approximately 30% over FY26-28. The company's focus on cross-selling, investments in digital platforms, and leveraging its 'One ABC' strategy are expected to drive healthy profitability, resulting in a return on equity (RoE) of approximately 16% by FY28E. We reiterate our buy recommendation with a target price of INR430, based on the company's estimated standalone value as of March 2028.